Regulation Correspondent, Europe
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Mar 13, 2014

Bank of England proposes six-year clawback on bankers’ bonuses

LONDON (Reuters) – Misbehaving bankers and their bosses will have to hand back bonuses up to six years after they pocketed the cash under a proposed rule from the Bank of England to prevent excessive risk-taking.

The aim of the rule put out for consultation by the central bank on Thursday is designed to stop bankers taking huge bets in the knowledge that they could move jobs before any problems come to light and marks a toughening of current rules that allow only for the cancellation or reduction of parts of bonuses that have been awarded but not yet paid.

Mar 12, 2014

UK watchdog to review, cap payday loan rates

LONDON (Reuters) – Britain’s financial watchdog will review in April how payday lenders collect debts and impose a cap from early 2015 on the sky-high interest rates criticized by politicians and churches.

The Financial Conduct Authority said the review will be one of its first acts next month when it takes on supervision of about 50,000 consumer credit firms.

Mar 11, 2014

BoE to check banker allowances comply with bonus cap

LONDON (Reuters) – The Bank of England is scrutinizing allowances awarded to top staff by banks in an effort to establish whether they are a covert way of avoiding a new European Union cap on bonuses, a senior official at the central bank said on Tuesday.

From next year bankers’ bonuses in the 28-country EU can be no higher than fixed salary, or twice that amount if a bank’s shareholders give their approval. However, HSBC, Lloyds and Barclays are all considering giving top staff monthly or quarterly allowances to boost fixed pay.

Mar 11, 2014

UK watchdog plans crackdown on “add-on” product insurance

LONDON, March 11 (Reuters) – Britain’s financial watchdog is
proposing to crack down on the billion-pound market for “add on”
insurance that people often buy unknowingly when they purchase
items such as a car or a holiday.

Tuesday’s proposals from the Financial Conduct Authority
(FCA) stem from an investigation launched last July which found
poor competition, low levels of claims and consumers potentially
being overcharged by up to 200 million pounds ($332.6 million) a
year for products that they may not need or even use.

Mar 11, 2014

UK financial body urges quick action over foreign exchange ‘fixing’

LONDON (Reuters) – Regulators should deal quickly with allegations that banks have rigged the $5.3 trillion-a-day foreign exchange market to avoid harming Britain’s reputation as a financial centre, a top industry official said on Tuesday.

Chris Cummings, chief executive of finance sector lobby group The CityUK, said the sooner the allegations are dealt with the better for London, which accounts for 40 percent of the global currency market.

Mar 10, 2014

EU lawmakers to press Barnier on scope of bonus cap rule

LONDON (Reuters) – European Union rules to cap bankers’ bonuses were in doubt on Monday after the bloc’s lawmakers agreed to consider a revamp to stop Britain’s banks softening their impact.

The cap is one of the most high-profile rules from the 28-country bloc after public anger over high pay at banks, many of which were propped up by taxpayers in the 2007-09 financial crisis.

Mar 7, 2014

EU lawmakers to study bonus rule as banks take evasive action

LONDON, March 7 (Reuters) – European Union lawmakers will
consider toughening up the bloc’s cap on bankers’ bonuses after
lenders have begun softening its impact by awarding extra
“allowances” to top up fixed pay.

The cap is one of the most high-profile rules from the
28-country bloc after public anger over high pay at banks, many
of which were propped up by taxpayers in the 2007-09 financial
crisis.

Mar 6, 2014

Top banks seen meeting capital rules well before deadline

LONDON, March 6 (Reuters) – The world’s top banks have
already added most of the capital they need to meet new solvency
rules in full, five years ahead of a 2019 deadline set by
regulators, global banking supervisors said on Thursday.

Market and regulatory pressure has meant banks moved early
to build up their capital buffers to dispel doubts about their
health, with European banks in particular topping up on capital
to ensure they pass a review of their assets and a stress test
this year.

Mar 5, 2014

BoE’s Haldane says IMF needs more funds

MANCHESTER, England (Reuters) – The International Monetary Fund needs more money to become a better bulwark against financial crises spreading, a senior Bank of England official said on Wednesday.

Andy Haldane, the central bank’s executive director for financial stability, said the Group of 20 leading economies (G20) lamented when they met in Sydney last month that U.S. Congress had still not approved an increase for IMF funds.

Mar 4, 2014

Banks must accept risk weights need fixing: Basel’s Ingves

LONDON (Reuters) – Changes to how banks add up risks on their books to determine capital levels are inevitable and lenders must acknowledge there is a problem to be fixed, a global banking supervisor said on Tuesday.

Stefan Ingves, chairman of the Basel Committee of banking supervisors from nearly 30 countries, said variations in how banks add up risks were “uncomfortably wide” but not all lenders accept there is a problem in the first place.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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